Strictly Private & Highly Confidential CIMB Group Analyst Presentation 9M17 Results 28 November 2017
Agenda 1. Key Highlights 2. CIMB Group 9M17 Financials 3. PBT by Segment 3.1 Regional Consumer Banking 3.2 Regional Commercial Banking 3.3 Regional Wholesale Banking 3.4 Group Asset Management & Investments 3.5 Group Funding 3.6 CIMB Islamic 4. T18 Updates 5. Final Remarks
CIMB Group : 9M17 Results 1. Key Highlights
Key Financial Highlights Operating Income Overhead Expenses Loan Impairment (RM ‘ mil) (RM ‘ mil) (RM ‘ mil) +11.6% Y-o-Y +6.3% Y-o-Y -0.3% Y-o-Y -6.0% Q-o-Q +0.2% Q-o-Q +2.2% Q-o-Q Gross Loans * Net Profit Deposits (RM ‘ mil) (RM ‘ bil) (RM ‘ bil) +4.5% Y-o-Y +7.0% Y-o-Y +26.0% Y-o-Y +1.5% Q-o-Q +2.6% Q-o-Q +1.1% Q-o-Q 4 Notes: * Excluding bad bank
Key Ratios ROE NIM CI -250bps Y-o-Y -11bps Q-o-Q +130bps Y-o-Y +10bps Q-o-Q +6bps Y-o-Y -100bps Q-o-Q LD Loan Loss Charge CET 1 +220bps Y-o-Y +110bps Y-o-Y -5bps Q-o-Q -5bps Y-o-Y -40bps Q-o-Q +10bps Q-o-Q 5
PBT By Segments 9M17 9M16 9M17 PBT Growth by Key Divisions Consumer Commercial Wholesale Group Asset Group Banking Banking Banking Management Funding & Investments +17.7% +16.2% +14.0% +33.0% +43.4% PPOP Y-o-Y +10.8% -14.2% +64.6% -51.0% +44.9% PBT Y-o-Y +13.2% -69.2% +18.8% -86.5% +24.4% PBT Q-o-Q 6
PBT By Country 9M17* 9M16* 9M17* PBT Y-o-Y Growth by Key Countries +14.8% +13.0% +7.5% +34.9% PPOP Y-o-Y +9.6% +67.1% +33.8% +45.2% PBT Y-o-Y +23.9% +2.4% -66.7% -2.6% PBT Q-o-Q 7 Notes: * Excluding HQ costs, mainly comprising of funding costs
CIMB Group : 9M17 Results 2. CIMB Group 9M17 Financials
Quarterly Earnings Trend *RM ’mil Notes: FY15: 3Q15 Excluding tax and MI on ID MSS (RM36 mil) and ID MSS cost (RM134 mil) 9 4Q15: ID MSS cost (RM32mil) and tax on ID MSS (RM8 mil)
Earnings Summary (RM ‘mil) 9M17 9M16 Y-o-Y 3Q17 2Q17 Q-o-Q Net interest income 9,213 8,247 11.7% 3,049 3,118 (2.2%) ^ Non interest income 3,898 3,505 11.2% 1,374 1,209 13.6% Operating income 13,111 11,752 11.6% 4,423 4,327 2.2% Overhead expenses (6,826) (6,421) 6.3% (2,267) (2,263) 0.2% PPOP 6,285 5,331 17.9% 2,156 2,064 4.5% Loan impairment (1,652) (1,657) (0.3%) (595) (633) (6.0%) Other provisions (67) (101) (33.7%) (35) (1) >1000% Share of JV / Associates 9 99 (90.9%) 2 3 (33.3%) PBT 4,575 3,672 24.6% 1,528 1,433 6.6% Net profit 3,415 2,710 26.0% 1,132 1,103 2.6% EPS (sen) 38.1 31.4 21.3% 12.5 12.3 1.6% ROE (Annualised) 9.8% 8.5% 130bps 9.5% 9.4% 10bps 10 Note: ^ Including gain on sale of Sun Life in 3Q16 (RM150mil)
Key Ratios (%) 9M17 9M16 Y-o-Y 3Q17 2Q17 Q-o-Q ROE ~ 9.8 8.5 9.5 9.4 NIM ~** 2.67 2.61 2.60 2.71 Non-interest income / total income 29.7 29.8 31.1 27.9 Cost to income 52.1 54.6 51.3 52.3 Allowance coverage # 72.4 83.5 72.4 77.6 Loan loss charge ~ 0.68 0.73 0.73 0.78 Gross impaired loans ratio 3.5 3.2 3.5 3.2 Net impaired loans ratio (Net of IA and PA) 1.0 0.6 1.0 0.7 Average shareholders’ funds (RM ’mil) 46,677 42,438 47,595 46,950 ROA ~ 0.92 0.76 0.91 0.89 Book value per share (RM) 5.31 5.02 5.31 5.21 Loan to Deposit (LDR) 92.0 89.8 92.0 92.4 CASA ratio 35.5 34.2 35.5 35.6 Notes: ~ Annualised ** Daily Average 11 # Including regulatory reserve, allowance coverage was 85.3% as at end-Sep 2017
Operating Expenses (RM ‘mil) 9M17 9M16 Y-o-Y 3Q17 2Q17 Q-o-Q Personnel 3,918 3,583 9.3% 1,314 1,327 (1.0%) Establishment 1,651 1,571 5.1% 546 525 4.0% Marketing 212 238 (10.9%) 63 83 (24.1%) Admin & General 1,045 1,029 1.6% 344 328 4.9% Total 6,826 6,421 6.3% 2,267 2,263 0.2% Cost to income 52.1% 54.6% (250bps) 51.3% 52.3% (100bps) 12
Gross Loans Growth Loans by Country as at 30 Sep 17 # Divisions / Products (RM ‘bil) 30 Sep 17 30 Sep 16 Y-o-Y 30 Jun 17 Q-o-Q Consumer Banking (51.5%) 166.1 155.5 6.8% 164.6 0.9% Mortgages 85.8 77.2 11.1% 84.1 2.0% Term Loans 35.4 34.6 2.3% 35.6 (0.6%) Auto 19.5 19.7 (1.0%) 19.6 (0.5%) Credit Cards 9.4 9.2 2.2% 9.4 - Personal Financing 4.8 4.8 - 4.9 (2.0%) Enterprise 8.4 7.6 10.5% 8.2 2.4% Loans Growth* + Y-o-Y Others 2.8 2.4 16.7% 2.8 - Malaysia 8.5% Commercial Banking (13.3%) 43.0 39.6 8.6% 42.4 1.4% Indonesia ^ 2.7% Wholesale Banking (35.2%) 113.6 106.5 6.7% 112.2 1.2% Thailand ^ 0.1% Gross Loans excl bad bank* 322.7 301.6 7.0% 319.2 1.1% Singapore ^ 7.7% Bad Bank 3.1 2.9 6.9% 3.1 - Others** 2.1% Total Gross Loans 325.8 304.5 7.0% 322.3 1.1% Group ~ 6.4% Notes: * Excluding FX fluctuations, total gross loans grew 6.4% Y-o-Y and 1.7% Q-o-Q + Gross loans exclude bad bank # Based on geographical location of counterparty, excluding bad bank ^ In local currency ~ Excluding FX fluctuations 13 ** Including Labuan, London, Cambodia, Hong Kong & Shanghai
Deposits Growth Deposits by Country as at 30 Sep 17 Divisions / Products (RM ‘bil) 30 Sep 17 30 Sep 16 Y-o-Y 30 Jun 17 Q-o-Q Consumer Banking (47.0%) 166.4 145.6 14.3% 164.4 1.2% Commercial Banking (12.8%) 45.3 45.1 0.4% 45.3 - Wholesale Banking # (40.2%) 142.3 148.2 (4.0%) 139.2 2.2% Total * 354.0 338.9 4.5% 348.9 1.5% Deposits Growth Y-o-Y Malaysia 10.6% Indonesia ^ 4.8% Thailand ^ (3.5%) Singapore ^ (6.9%) Others** (36.6%) Group ~ 4.0% Notes: * Excluding FX fluctuations, total group deposits grew 4.0 Y-o-Y and 2.0% Q-o-Q ^ In local currency ~ Excluding FX fluctuations # Including deposits with options classified as derivatives in MY & SG 14 ** Including Labuan, London, Cambodia, Hong Kong & Shanghai
CASA Growth CASA by Country as at 30 Sep 17 Country (RM ‘bil) 30 Sep 17 30 Sep 16 Y-o-Y 30 Jun 17 Q-o-Q Malaysia 67.2 59.8 12.4% 66.4 1.2% Indonesia ** 31.3 29.9 4.7% 30.5 2.6% Thailand 8.4 11.4 (26.3%) 8.9 (5.6%) Singapore 16.0 12.2 31.1% 15.6 2.6% + Others 2.7 2.5 8.0% 2.8 (3.6%) Total * 125.6 115.8 8.5% 124.2 1.1% CASA Growth Y-o-Y Malaysia 12.4% Indonesia ^ 6.2% Thailand ^ (30.6%) Singapore ^ 28.2% Group ~ 8.0% Notes: * Excluding FX fluctuations, total CASA grew 8.0% Y-o-Y and 1.8% Q-o-Q ** Adjusted for high cost saving deposits classified as Structured Deposits ^ In local currency ~ Excluding FX fluctuations 15 + Including Labuan, London, Cambodia, Hong Kong & Shanghai
Capital Management : CIMB Group Capital Ratios Min Req. 11.9% 12.0% 11.5% 11.3% CET1 5.125% 10.9% 13.4% 13.5% 13.0% 12.9% 12.4% Tier 1 6.625% 16.8% 16.6% 16.3% 16.4% 15.8% Total Capital 8.625% * ^ ^ ~ ~ Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Leverage Ratio (times) Gearing Ratio Double Leverage Ratio 15.6 22.8% 23.0% 115.2% 15.3 114.7% 15.1 20.9% 113.0% 14.8 20.4% 20.4% 14.6 112.5% 112.6% * ^ ^ ^ ^ ~ ~ ~ * ~ Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 ^ ^ ~ ~ * Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Notes: * Post CIMBGH’s FY16 First Interim Dividend of RM698 mil and actual corresponding DRS take-up rate of 85.7% ^ Post CIMBGH’s FY16 Second Interim Dividend & the actual corresponding DRS (81.8% take-up rate); and projected reinvestment of cash dividend surplus into CIMB Bank 16 ~ Post CIMBGH’s Proposed FY17 First Interim Dividend of RM1,177 mil & actual corresponding DRS take-up rate of 82.2%
CIMB Group : 9M17 Results 3. PBT by Segment
PBT by Segments PBT (RM ‘mil) 9M17 9M16 Y-o-Y 3Q17 2Q17 Q-o-Q Consumer Banking (41.9%) 1,915 1,728 10.8% 719 635 13.2% Commercial Banking (6.1%) 278 324 (14.2%) 32 104 (69.2%) Wholesale Banking (40.3%) 1,845 1,121 64.6% 607 511 18.8% Corporate Banking (24.6%) 1,126 569 97.9% 345 308 12.0% Treasury & Markets ~ (14.4%) 658 520 26.5% 212 192 10.4% Investment Banking + (1.3%) 61 32 90.6% 50 11 354.5% GAMI ** (2.1%) 95 194 (51.0%) 7 52 (86.5%) Group Funding # (9.6%) 442 305 44.9% 163 131 24.4% PBT 4,575 3,672 24.6% 1,528 1,433 6.6% Notes: ~ Including treasury operations, markets and transaction banking + Including advisory, equities, capital markets, private banking and research ** Including asset management and strategic investments 18 # Including capital investments in fixed income securities and investment in Group’s proprietary capital
CIMB Group : 9M17 Results 3.1 Regional Consumer Banking
Consumer Banking (RM ‘mil) 9M17 9M16 Y-o-Y 3Q17 2Q17 Q-o-Q Net interest income 4,413 3,982 10.8% 1,485 1,484 0.1% Non interest income 1,523 1,335 14.1% 547 493 11.0% Operating income 5,936 5,317 11.6% 2,032 1,977 2.8% Overhead expenses (3,272) (3,054) 7.1% (1,117) (1,067) 4.7% PPOP 2,664 2,263 17.7% 915 910 0.5% (Provisions) / Writeback (752) (537) 40.0% (197) (275) (28.4%) Share of JV / Associates 3 2 50.0% 1 - 100.0% PBT 1,915 1,728 10.8% 719 635 13.2% PBT by Country 9M17 9M16 Y-o-Y 3Q17 2Q17 Q-o-Q Malaysia (RM ‘mil) 1,525 1,368 11.5% 536 479 11.9% Indonesia (IDR ‘bil) 328 659 (50.2%) 225 178 26.4% Thailand (THB ‘mil) 1,608 889 80.9% 627 570 10.0% Singapore (SGD ‘mil) 21 15 40.0% 8 7 14.3% Others * (RM ‘mil) 13 9 44.4% 5 4 25.0% PBT 1,915 1,728 10.8% 719 635 13.2% 20 Note: * Including Labuan, London, Cambodia, Hong Kong & Shanghai
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